Dixon Technologies (India) Ltd Falls to 52-Week Low of Rs.10,563

Stock Price Movement and Market Context

The stock’s fall to Rs.10,563 comes after five consecutive days of declines, although it recorded a modest gain today, outperforming its sector by 0.28%. Despite this slight uptick, Dixon Technologies remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend in the short to medium term.

In comparison, the broader market, represented by the Sensex, experienced a negative session, falling by 498.02 points or 0.69% to close at 82,996.47. The Sensex is currently 3.81% below its 52-week high of 86,159.02 and has been on a three-week losing streak, shedding 3.22% over that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience in the benchmark index.

Performance Analysis Over the Past Year

Over the last twelve months, Dixon Technologies has underperformed significantly, delivering a negative return of 36.97%, in stark contrast to the Sensex’s positive 8.37% gain and the BSE500’s 7.55% rise. This divergence highlights the stock’s relative weakness despite the broader market’s upward trajectory.

The stock’s 52-week high of Rs.18,471.5 was reached amid strong growth expectations, but the subsequent decline has brought the price down by nearly 43% from that peak. This price movement reflects a combination of valuation reassessments and market sentiment shifts within the Electronics & Appliances sector.

Fundamental Strength Amid Price Weakness

Despite the recent price decline, Dixon Technologies maintains strong fundamental credentials. The company’s long-term Return on Capital Employed (ROCE) stands at an impressive 30.45%, underscoring efficient capital utilisation. Net sales have grown at an annualised rate of 64.62%, while operating profit has expanded by 54.63% annually, reflecting robust business growth over recent years.

Financial discipline is evident in the company’s low Debt to EBITDA ratio of 0.31 times, indicating a strong capacity to service debt obligations. The company’s operating cash flow for the year reached a peak of Rs.1,149.75 crores, further highlighting its cash generation capabilities.

Quarterly results have been consistently positive, with the latest quarter showing a 151.3% increase in operating profit and a 195.6% rise in PAT to Rs.670 crores. Net sales for the quarter hit a record Rs.14,855.04 crores, marking the highest quarterly sales in the company’s history. These figures demonstrate sustained operational momentum despite the share price pressures.

Market Position and Institutional Interest

Dixon Technologies is the largest company in its sector by market capitalisation, valued at Rs.65,132 crores, representing 47.37% of the Electronics & Appliances sector. Its annual sales of Rs.48,436.92 crores account for 56.62% of the industry’s total, underscoring its dominant market position.

Institutional investors hold a significant 49.63% stake in the company, with their holdings increasing by 2.39% over the previous quarter. This level of institutional interest reflects confidence in the company’s fundamentals and long-term prospects, even as the stock price has faced downward pressure.

Valuation and Relative Performance

The company’s ROCE of 31.8 and an Enterprise Value to Capital Employed ratio of 13.7 suggest a relatively expensive valuation. However, the stock currently trades at a discount compared to its peers’ average historical valuations, indicating some valuation adjustment in the market.

Despite the negative price performance, the company’s profits have risen by 129.2% over the past year, resulting in a PEG ratio of 0.4. This metric points to earnings growth outpacing the decline in share price, a factor that may be considered in valuation assessments.

Recent Rating and Market Sentiment

On 3 November 2025, Dixon Technologies’ Mojo Grade was downgraded from Buy to Hold, reflecting a more cautious stance on the stock amid its price weakness. The current Mojo Score stands at 57.0, consistent with a Hold rating. The Market Cap Grade is 2, indicating a sizeable but not top-tier market capitalisation within the broader market context.

Today’s trading session saw the stock gain 1.20%, a modest recovery after the recent declines. However, the overall trend remains subdued, with the stock still trading well below its key moving averages and recent highs.

Sector and Industry Overview

Dixon Technologies operates within the Electronics & Appliances sector, which has experienced mixed performance amid global supply chain adjustments and fluctuating demand patterns. The company’s dominant market share and strong sales growth contrast with the sector’s broader volatility, as reflected in the stock’s price movements.

The company’s market cap of Rs.65,132 crores makes it the largest player in the sector, accounting for nearly half of the sector’s total market capitalisation. This leadership position underscores its importance within the industry despite recent share price pressures.

Summary of Key Financial Metrics

To summarise, Dixon Technologies exhibits the following financial highlights:

• Return on Capital Employed (ROCE): 30.45%


• Annual Net Sales Growth: 64.62%


• Annual Operating Profit Growth: 54.63%


• Debt to EBITDA Ratio: 0.31 times


• Operating Cash Flow (Yearly): Rs.1,149.75 crores


• Quarterly PAT Growth: 195.6% to Rs.670 crores


• Quarterly Net Sales: Rs.14,855.04 crores (highest recorded)


• Institutional Holdings: 49.63%, increased by 2.39% over last quarter


• Market Capitalisation: Rs.65,132 crores


• PEG Ratio: 0.4

These figures illustrate a company with strong operational performance and financial health, despite the recent share price decline to its 52-week low.

Conclusion

Dixon Technologies (India) Ltd’s fall to Rs.10,563 marks a significant price milestone, reflecting a challenging period for the stock amid broader market and sectoral headwinds. While the share price has declined sharply from its 52-week high, the company’s robust financial metrics and market leadership remain evident. The stock’s current Hold rating and Mojo Score of 57.0 reflect a balanced view of its valuation and performance in the context of recent market developments.

Investors and market participants will continue to monitor the stock’s price action in relation to its fundamental strength and sector dynamics as the year progresses.

Unlock special upgrade rates for a limited period. Start Saving Now →